Reliance Industries Limited · NSE:RELIANCE

Reliance Industries — Investor Presentation (November 2005)

28 slides from Reliance Industries's investor presentation, November 2005

  1. Slide 1: Reliance Industries Limited Investor Presentation November 2005

    Reliance Industries Limited Investor Presentation November 2005 Coverage Reliance Reliance Industries Industries --Overview Overview Business Business Review Review Summary Summary www.ril.com 2

  2. Slide 2: Journey of Phenomenal Growth

    Journey of Phenomenal Growth 1992-1993 1999-2000 1st GDR issue Refinery & 2004 Net Profit (US$ Million) 1991 Petrochemicals 1800 complex started Trevira acquisition 1650 Hazira at Jamnagar Fortune Global 500 Petrochemicals 1,731 1500 complex 1997-1998 1350 Cracker 2002 1200 1982 – 1988 completion 10

  3. Slide 3: Reliance - Robust Growth

    Reliance - Robust Growth (in US$ Million) FY 2000 FY 2005 CARG % (5 Years) Revenues 3,633 16,725 35.71 Net Profit 551 1,731 25.73 Cash Profit 857 2,763 26.38 Total Assets 6,733 18,422 22.30 Market Cap 7,644 24,055 25.77 India’s first and only private sector company to feature in the Fortune Global 5

  4. Slide 4: Domestic Leadership & Global Rankings

    Changes in Global Rankings FY 2000 FY 2005 POY / PSF 4 1 PP 6 7 PTA 6 6 MEG - 5 PX 3 4 Global leadership in Polyester www.ril.com 7 Domestic Leadership & Global Rankings Leading Market Shares in India Leading Global Position 1 Polyester 4 Paraxylene Polyester 55% (Fibre & Yarn) Fibre Intermediates 7

  5. Slide 5: ROE & ROCE Trend

    ROE & ROCE Trend ROE (%) 25.0 21.9 22.7 20.0 20.0 17.0 16.1 14.8 15.0 10.0 5.0 0.0 2001 2002 2003 2004 2005 Q2 FY06 35.0 ROCE (%) 30.5 30.0 25.0 20.3 21.0 18.5 20.0 14.8 12.9 Sustained improvement in 15.0 10.0 ROE and ROCE 5.0 0.0 2001 2002 2003 2004 2005 Q2 FY06 www.ril.com 9 Coverage Reliance Reli

  6. Slide 6: E&P Portfolio

    Exploration Exploration&&Production Production(E&P) (E&P) E&P Portfolio „ Producing Assets - Panna- Mukta & Tapti „ Exploration Blocks - 34 blocks in India and one each in Yemen and Oman „ Exploration Acreage - about 340,000 sq.km. „ Coal Bed Methane - 5 blocks (4,000 sq.km.) A diversified and balan

  7. Slide 7: Exploration Acreage

    Exploration Acreage „ NELP-I „ Shallow Water Blocks :8 „ Deep water Blocks :3 „ NELP-II „ Shallow Water Blocks :1 „ Deep Water Blocks :2 „ On-land Blocks :1 „ NELP-III „ Shallow Water Blocks :2 „ Deep Water Blocks :7 „ NELP-IV „ Deep Water Blocks :1 „ GK-OSJ-3 NELP-V (not shown in the Map) „ Deep Wa

  8. Slide 8: Reserves

    Reserves „ World class gas discovery in Krishna-Godavari basin (14 TCF OGIP) – further potential upside under exploration „ Discovery in NEC-25- puts Mahanadi offshore to petroliferous map of India (1-1.2 TCF OGIP) „ Discovered CBM Gas – puts Coal Bed Methane in the map of India (3.65 TCF OGIP) 2008

  9. Slide 9: Status – KG D6 Development

    Status – KG D6 Development „ Peripheral Bund construction at onshore terminal nearing completion „ FEED optimization studies being carried out „ First Development well spudded with D534 rig and drilling in progress „ Contract for development to be awarded in calendar Q1-06 „ Commercial production ex

  10. Slide 10: Status – NEC 25 and Overseas Assets

    Status – NEC 25 „ Met ocean Studies being carried out „ 600 sq. km. 3D seismic data acquired pre-monsoon 2005, another 1100 sq. km. data is being acquired currently „ Commerciality report for the discoveries in the block under preparation www.ril.com 19 Overseas Assets Yemen: – Development Plan appr

  11. Slide 11: Refining Capacity: Demand vs Supply

    Refining Refining&&Marketing Marketing(R&M) (R&M) Refining Capacity World Asia Global Capacity Demand Asia Capacity Demand 90,000 30,000 25,000 85,000 20,000 80,000 15,000 75,000 10,000 5,000 70,000 2000 2001 2002 2003 2004 2005 2006 2007 - 2000 2001 2002 2003 2004 2005 2006 2007 Capacity in ‘000 bp

  12. Slide 12: Refining Capacity in China and India

    Refining Capacity China India India Capacity Demand China Capacity Demand 8,000 3,500 7,000 3,000 6,000 2,500 5,000 2,000 4,000 1,500 3,000 1,000 2,000 500 1,000 - - 2000 2001 2002 2003 2004 2005 2006 2007 2000 2001 2002 2003 2004 2005 2006 2007 Capacity in ‘000 bpd Source: PEL, BP statistical revie

  13. Slide 13: Reliance Refinery Operational Excellence

    Reliance Refinery Crude Throughput Complexity Index 700 16 600 14 12 500 10 Petrochemical Component KBPSD 400 8 300 6 200 4 100 2 0 0 Jamnagar Singapore European Reliance, Supersite Supersite Jamnagar Asia Super European Supersite Supersite Reliance, Shell, US US Site Source: NEXANT/Solomon • Benchm

  14. Slide 14: Refinery Expansion - Key Factors

    Refinery Expansion - Key Factors „ Under - investment in energy infrastructure since 1990 „ Shortage in refining capacity exacerbated by strong demand growth „ Important structural changes „ Widening light-heavy differential „ Widening diesel-fuel oil differential „ New refining capacity unlikely to

  15. Slide 15: Petrochemical Industry & Economic Growth

    Petrochemicals Petrochemicals Petrochemical Industry & Economic Growth Global ethylene consumption (MMT) Global Ethylene Consumption & GDP 2005 110 2004 2 R = 0.99 2002 100 2003 2001 90 2000 1999 1997 80 1998 70 1996 60 1990 1993 1994 1995 1987 1988 1992 1986 1991 50 1985 1989 1983 40 1982 1984 1980

  16. Slide 16: Ethylene Demand Supply

    Ethylene Demand Supply World EOS MMTA MMTA 160 110% 80 110% Demand 140 70 Demand 120 60 100% 100% 100 50 80 40 60 30 90% 90% 40 20 Op. rate Capacity Op. rate 20 10 0 80% 0 80% 2000 2002 2004 2006 2008 2009 2000 2002 2004 2006 2008 2009 2004 – 2009 (CAGR) 2004 – 2009 (CAGR) Demand Æ 3.7% Demand Æ 7.2

  17. Slide 17: Propylene Demand Supply

    Propylene Demand Supply World EOS MMTA MMTA 120 110% 50 120% Capacity 45 Demand 100 40 35 80 100% 110% 30 Op. rate 60 25 20 Demand 100% 40 90% 15 Op. rate 10 20 5 0 80% 0 90% 2000 2002 2003 2004 2006 2008 2009 2000 2002 2004 2006 2008 2009 2004 – 2009 (CAGR) 2004 – 2009 (CAGR) Demand Æ 4.2% Demand Æ

  18. Slide 18: Asia becomes the Growth Driver

    Asia becomes the Growth Driver 120 US P o lym e rs K g / p e r c a p ita 100 Korea 80 60 Malaysia Japan 40 West Europe Thailand 20 China Indonesia 0 India 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 GDP per capita (US $) Reliance benefits from its geographical and low-cost advantages ww

  19. Slide 19: Global Industry Outlook

    Global Industry Outlook Ethylene – New investments in “feedstock-advantage” ME centers – ME Cap share likely at <20% (2009) PE – Supply tightness to continue till 2007 – New ME capacity could soften markets beyond 2008 – Assets to come in demand heavy or low-cost centers (feedstock benefits) PP – PP

  20. Slide 20: Asian Business Dynamics

    Asian Business Dynamics „ Asian Demand supply situation has resulted in sustained up-cycle „ Rising Feedstock Prices have dampened margins partially „ North American Gas based Petrochemical producers are under pressure from high Gas prices ($ 14 / MMBTU) „ Hurricanes have resulted in temporary outag

  21. Slide 21: POY Growth outstrips Expansion Plans

    POY Growth outstrips Expansion Plans World Asia KTA KTA 30000 30000 Capacity 25000 25000 Capacity Demand Demand 20000 20000 15000 15000 10000 10000 5000 5000 0 0 2000 2002 2003 2004 2005 2006 2008 2010 2000 2002 2003 2004 2005 2006 2008 2010 2005 – 2010 (CAGR) 2005 – 2010 (CAGR) Demand Æ 6.6 % Deman

  22. Slide 22: Polyester: Capacity Utilisation

    Polyester: Capacity Utilisation 100% India 90% S Korea 80% World 70% China 60% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2010 India: High utilisation rate to continue – Reliance is at 100% capacity utilisation Source : PCI www.ril.com 43 Fibres: Polyester Dominance Reliance Investment in 1.4 milli

  23. Slide 23: Advantage Reliance

    Advantage Reliance PX PTA Capacity '000 MT Capacity '000 MT Exxon Mobil 3,300 BP 6,721 BP 2,500 Sinopec 2,755 Mitsubishi 1,750 Sinopec Group 2,015 FCFC 1,540 Reliance 1,646 1,956 Petrocel 1,510 Mitsui 1,400 LG Caltex 1,050 Reliance 1,350 1,980 - 500 1,000 1,500 2,000 2,500 3,000 3,500 - 2,000 4,000

  24. Slide 24: Global Industry Outlook

    Global Industry Outlook „ Polyester manufacturing is moving towards Asia and is aligned to the textile industry „ India and China are the future manufacturing bases with 80% of capacity presently located in Asia „ Indian textile exports to US has moved up by 30%, second only to China „ Low per capit

  25. Slide 25: Reliance: Superior Stock Performance

    Reliance: Superior Stock Performance 160 Indexed 2005 YTD price performance 150 140 130 120 110 100 90 80 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Reliance BSE Sensex SP500 C hemicals MSCI Asia ex-Japan www.ril.com 49 Strong Fundamentals „ Strong Cash flows ¾ Exis

  26. Slide 26: Reliance: Capture Growth Opportunities

    Reliance: Capture Growth Opportunities „ Substantial investments in E & P (US$ 4 billion) „ Creation of petroleum retail network (US$ 1.5 billion) „ Expansion of petroleum refinery (US$ 5.7 billion) „ Increase in petrochemicals capacities (US$ 1.6 billion) Investments of over US$ 12 billion in next

  27. Slide 27: Larger Strides Going Ahead

    Larger Strides Going Ahead „ Doubling Refining capacity to 60 million tonnes to maximise revenue opportunity „ Petrochemical capacity of over 15 million tonnes with stable margins „ Gas assets of over 18 TCF to capture local demand supply mismatch „ Allocation of capital to high potential, higher ma

  28. Slide 28: Growth is Life - Thank You

    Growth is Life Thank ThankYou You

Reliance Industries — Investor Presentation (November 2005) on 6ix